July 22, 2024

Producers Can Use Farm Loan Programs for Climate-Smart Opportunities


The USDA’s Farm Service Agency (FSA) and Natural Resources Conservation Service (NRCS) reminds agricultural producers that farm loan programs can be used to support a variety of climate-smart agriculture practices. Many that can build on practices that farmers and ranchers already use, like cover cropping, nutrient management and conservation tillage. 

Climate-smart agricultural practices generate significant environmental benefits by capturing and sequestering carbon, improving water management, restoring soil health and more. Farm loan funding complements other tools to help producers adopt climate-smart practices, such as FSA’s Conservation Reserve Programcrop insurance options that support conservation, and conservation programs offered by NRCS.

There are multiple types of loans to help farmers and ranchers start, expand or maintain a family agricultural operation. These loans can provide the capital needed to invest in climate-smart practices and equipment including the establishment of rotational grazing systems, precision agriculture equipment or machinery for conversion to no-till residue management. Additionally, for conservation programs through FSA and NRCS where USDA and the producer share the implementation cost, a farm loan could be used for the producer’s share, if consistent with the authorized loan purpose. 

Visit the Climate-Smart Agriculture and Forestry webpage to learn more about how USDA farm loans can support climate-smart agriculture practices. 

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